Starting again with the data of Exhibit 8.2, close the book and check that you are able to produce the process cost information ending with the value of finished output and the value of work-in-progress. You must understand and be confident about Exhibit 8.2 before you read further.

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Exhibit 8.2 Process costing illustration: No opening work-in-progress Step 1 Collect data for the period The following information relates to the assembly department in a company manufacturing shower units for bathrooms. A pack of materials is introduced at the start of the process. The pack contains a plastic shower head, flexible hose and various plumbing items. These are assembled by employees and then passed from the assembly department to the electrical department for connection to the electric power unit. At the end of the month there will be some shower units only partly completed. The supervisor of the assembly department has estimated that these units are 40 per cent completed at that date. Data in respect of month 1 No work-in-progress at start of month. 60,000 units of raw materials introduced for conversion. 40,000 units of output completed during the month. 20,000 units of work-in-progress, 40 per cent completed at end of month. Costs incurred on material, labour and overheads: 120,000.